JA_SCADA_WON1813137_11Apr2024_Final_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING

SYSTEMS COMMAND, MARIANAS

PSC 455, BOX 195

FPO AP 96540-2937

J&A No. WO# 1813137

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Facilities Engineering Systems Command (NAVFAC) Marianas

2. Description of the Action Being Approved.

Award of a contract on a sole source basis for the installation/commissioning of hardware and software for WON 1813137 Water & Wastewater SCADA Vendor Support.

3. Description of Supplies/Services.

This is a project intended to provide vendor support and services for Supervisory Control and Data Acquisition (SCADA) systems at Naval Base Guam (NBG). The project is intended to provide all necessary vendor assistance to ensure continued systems functionality, timely validation and application of patches and updates to software and firmware, systems troubleshooting and diagnostics, vulnerability assessment and remediation, adequate processes and training for systems operation and repair in emergent conditions, and assessments of utilities assets for future systems integration. Work under this PWS is intended to cover SCADA controls systems currently in operation at Fena Water Treatment Plant (FWTP) and Apra Harbor Waste Water Treatment Plant (AHWWTP), as well as remote sites (e.g. reservoirs, pump stations, lift stations) that are connected to these systems. Current systems are running hardware and software installed and configured by systems integrator CDM Smith, Inc.

The project is divided into work elements consisting of base effort and options for continued support throughout the contract period of performance. The base effort and options variously cover remote systems and software support (email/phone) from the systems integrator, on-site systems vulnerability assessment and remediation, and on-site systems assessment and recovery for exigent system conditions/failures.

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 3204(a)(1), the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

5. Rationale Justifying Use of Cited Statutory Authority.

FAR 6.302-1(a)(2) provides the authority that full and open competition need not be provided for when “ the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements”.

Supervisory control and data acquisition (SCADA) is a system of software and hardware elements that allows industrial organizations to:

Control industrial processes locally or at remote locations Monitor, gather, and process real-time data Directly interact with devices such as sensors, valves, pumps, motors, and more through human-machine interface (HMI) software Record events into a log file

SCADA systems are crucial for industrial organizations since they help to ensure safety, maintain efficiency and reliability, process data for smarter decisions, and communicate system issues to help mitigate downtime. Specialized services are required for the installation and configuration of the SCADA system.

Market research for Small Business concerns was conducted using the Dynamic Small Business Search (DSBS) and FedBizConnect.com, with search criteria set for Keyword “SCADA system design” and NAICS code 541511 (Custom Computer Programming Services). Results rendered only two companies nationwide and no companies on Guam that are capable of providing these services. It is noted that CDM Smith is not a small business concern. Research into past work performed on the SCADA system showed that CDM Smith was the system integrator for both the SCADA systems at Fena Water Treatment Plant (FWTP) and at Apra Harbor Waste Water Treatment Plant (AHWWTP). CDM Smith was contracted by NAVFAC Marianas to develop the SCADA Master Plan for Joint Region Marianas in 2019, as well as to renovate the SCADA system at AHWWTP in 2023. In addition, they have previously been contracted by DZSP21 to provide services for the maintenance and repairs of the Navy’s SCADA system.

Both FWTP and AHWWTP SCADA systems have had vulnerabilities and single points of failure noted and experienced problems during and after typhoon Mawar. NAVFAC Marianas CIO has expressed that ongoing vendor support from the systems integrator is necessary in order to maintain systems cybersecurity authorizations, and that vendor support is also necessary in order to mitigate cybersecurity vulnerabilities on an ongoing basis. NAVFAC Marianas PW recognizes that significant vendor support from the systems integrator is necessary in order to perform necessary system patches, and to maintain and repair system functionality concomitant with required periodic system changes and exigent circumstances. Prior efforts were made to obtain the necessary systems integrator support via subcontract through July 2024, and were partially able to attain some of these requirements, but this has not provided an effective means of obtaining direct and timely support from the systems integrator.

It is imperative that CDM Smith as systems integrator remains beneficially involved in support of the FWTP and AHWWTP SCADA systems. Selection of another vendor provides significant risk for utilization of unproven or unfamiliar SCADA technicians, which will result in significant cost over runs and time delays. CDM Smith possess systems testbeds for testing software patches and updates prior to implementation, which reduces time needed by vendor personnel on-site, as well as reducing the risk for system problems. Their test environment which is similar to Navy’s test environment, tests and validates compatibility of their software and migration strategies to ensure successful systems updates and recovery processes.

CDM Smith’s years of past work on the Navy’s SCADA system provides them with intimate knowledge of the system. As stated above, the market availability for these services (especially by qualified personnel) is quite limited in the U.S., let alone Guam itself. It also requires a lot of extra time for the Navy to verify and monitor the new vendor personnel, and to validate their work, which can typically be avoided when there is vendor continuity for a system.

6. Description of Efforts Made to Solicit Offers from as Many Offers as Practicable.

On January 12, 2023, a Notice of Intent to Sole Source was published on SAM.gov which provided interested parties the opportunity to identify their interest and capability in response to the requirement. Inquiries received within 5 days after date of publication of this synopsis will be considered by the Government. However, no interested parties were identified within the allotted time in SAM.gov, nor were there any email submissions of interested parties as of January 26, 2023.

7. Determination of Fair and Reasonable Cost.

The contracting officer anticipates that the costs to the Government for the services covered under this J&A will be fair and reasonable. In accordance with FAR 15.404-1, the Government will determine whether the proposed price is fair and reasonable by comparing it to the independent government estimate.

8. Actions to Remove Barriers to Future Competition.

Prior to competing future requirements for the type of supplies/services covered by this document, NAVFAC Marianas will conduct a market survey to ascertain whether other potential sources are capable of meeting the Government’s needs. If another potential source emerges, NAVFAC Marianas will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Signature Name (Printed) Phone Number Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.